Bitcoin Bulls Hold on Amidst a Sea of Red

Bitcoin fell by 1.7% on Wednesday, following Tuesday’s 5.35% fall, to end the day at $7,606.6.

A start of the day slide saw Bitcoin pullback from an intraday high $7,756.1 through the day’s first major support level at $7,544.37 to a morning low $7,469.5 before recovering to $7,500 levels and breaking back through the first major support level to a relatively range bound middle part of the day.

The late afternoon saw the bearish trend resume, with Bitcoin sliding back through the first major support level at $7,544.37 and second major support level at $7,347.63 to an intraday low $7,440.2 before a late in the day recovery saw Bitcoin move back through to $7,600 levels and more importantly break back through the major support levels on the day.

Key to the late recovery was Bitcoin’s pullback to test buying appetite at the 38.2% FIB Retracement Level of $7,456, the strong support providing some comfort to the Bitcoin bulls amidst the current sell-off, with Bitcoin’s hold above the 38.2% FIB Retracement Level leaving the near-term bullish trend intact.

There were no major surprises on the news front to drive Bitcoin and the broader market southwards, which supported the late in the day recovery, though the constant chatter from South Korea on some material changes to crypto policy weighed, with the talk of ending tax benefits for Bitcoin exchanges yet another issue investors have to consider.

The South Korean government is already looking to force crypto exchanges to beef up security levels and improve anti-money laundering procedures, the combinations of which could see some exchanges move elsewhere or call it a day, the cost of running the exchanges expected to influence survivor bias and ultimately crypto liquidity.

Get Into Cryptocurrency Trading Today

At the time of writing, Bitcoin was up 0.35% to $7,633, with Bitcoin easing back from an early morning $7,713 high that fell short of the first major resistance level at $7,761.73, the early move coming off the back of a late Wednesday recovery rather than a shift in sentiment at the start of the day.

For the day ahead, a move back through to $7,700 levels would support a run at the first major resistance level at $7,761.73, while we will expect Bitcoin to fall short of the 23.6% FIB Retracement Level of $7,857 and $8,000 levels on the day, the near-term bullish trend under pressure following 4 consecutive days of losses.

Failure to break back through to $7,700 levels could see Bitcoin slide through to $7,500 levels to bring the day’s first major support level at $7,445.83 into play, though we will expect Bitcoin to continue to find strong support at the 38.2% FIB Retracement Level of $7,456 to limit heavier losses in event of a broad based market sell-off later in the day.

Holding on to $7,600 levels will be key through the remainder of the morning.

Buy & Sell Cryptocurrency Instantly